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Macroeconomic impact of natural disasters on a small island economy: evidence from a CGE model

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Author Info
P. K. Narayan

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Abstract

Natural disasters are common in the Pacific Island countries. Fiji has been affected by many of these disasters. The most recent cyclone exerted substantial damage to infrastructure, agricultural and industrial activity in Fiji. The aim of this article is to incorporate these damages into Fiji's computable general equilibrium model and examine the short-run macroeconomic impact. Among the key results, it is found that cyclones negatively impact private income, consumption, savings, real GDP and real national welfare.

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Publisher Info
Article provided by Taylor and Francis Journals in its journal Applied Economics Letters.

Volume (Year): 10 (2003)
Issue (Month): 11 (September)
Pages: 721-723
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Handle: RePEc:taf:apeclt:v:10:y:2003:i:11:p:721-723

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  1. Ilan Noy, 2007. "The Macroeconomic Consequences of Disasters," Working Papers 200707, University of Hawaii at Manoa, Department of Economics. [Downloadable!]
    Other versions:
  2. Noriko Ishikawa & Mototsugu Fukushige, 2005. "Impacts of Tourism and Fiscal Expenditure to Remote Islands: The Case of the Amami Islands in Japan," Discussion Papers in Economics and Business 05-24, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
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